What is a risk?:

What is a risk? “An uncertain event that may have an effect on the achievement of one or more of the project’s objectives”

Case Study Review:

Consider the case studies in groups Orlyval Dartford second crossing Eden Project Wembley Stadium What (if anything) went wrong? What realistic recommendations would you make for future projects? Who should implement these recommendations? 7 Case Study Review

The Project Risk Analysis and Management Process:

Cause - Risk - Effect:

Cause - Risk - Effect Cause Root cause of the risk e.g. Inability to recruit sufficient skilled people Risk What could happen e.g May result in insufficient resources for a testing programme Effect Consequences for the project objectives e.g. Failure to deliver critical product on time

Risk Identification (part1):

Identification (part 2):

Identification (part 2) Once a risk has been identified it must be recorded on a risk register which includes: Identification number Description Category Owner Potential Impact Probability Risk reduction actions Identify Risk Log

Response Planning:

Response Planning Once the specific responses have been decided upon they should be included within the project plan: Risks are integrated into the project plan They are included in the WBS , schedule, budget and contingency. Risk process needs to be live. Implement responses Update the plan

Risk response owners:

Strengths and Weakness of Traditional Approach:

Procedural Detailed Structured approach Scientific? Priority on largest risks? Codified in standards Auditable Focus on identification and analysis, not action Many risk are already managed as part of day to day management action. Record keeping can become more important than action Can ignore critical risks. Strengths Weaknesses Strengths and Weakness of Traditional Approach

Project Objectives:

Mason and Mitroff Analysis:

Mason and Mitroff Analysis 24 Ambiguity of objective Control over objectives High Low High Low Strategic Assumptions Surfacing and Testing

Case Study Analysis:

Case Study Analysis Review the project objectives Identify the degree of influence over the project objectives Complete a Mason and Mintroff analysis 25 Ambiguity of objective Control over objectives High Low High Low

Benefits of Identifying Real Risks:

Benefits of Identifying Real Risks Clarity about the project objectives. Understanding of the project from stakeholders viewpoints. Focuses of attention on the ‘important’ risks. Streamlines risk process. Builds on work done for similar projects. Increased chance of project success.